Neogen Corporation (NEOG)

Payables turnover

		Aug 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019
Cost of revenue (ttm)	US$ in thousands	905,083	932,892	915,465	935,907	830,479	723,301	622,394	482,567	463,396	446,232	425,625	403,608	387,925	369,635	355,939	349,990	344,910	346,791	343,600	343,535
Payables	US$ in thousands	61,464	89,748	112,184	90,210	76,669	60,494	79,251	27,002	34,614	23,548	34,222	22,414	23,900	23,257	20,697	22,537	25,650	18,994	19,567	18,345
Payables turnover		14.73	10.39	8.16	10.37	10.83	11.96	7.85	17.87	13.39	18.95	12.44	18.01	16.23	15.89	17.20	15.53	13.45	18.26	17.56	18.73

August 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $905,083K ÷ $61,464K
= 14.73

Neogen Corporation's payables turnover ratio has shown fluctuations over the past few years, ranging from 7.85 to 18.95 times. The payables turnover ratio indicates how efficiently the company is managing its trade payables by paying off its suppliers.

In the most recent data point, as of August 31, 2024, the payables turnover ratio stands at 14.73, which indicates that the company pays off its trade payables approximately 14.73 times a year. This represents an improvement compared to the previous period.

The trend in the payables turnover ratio over the past few years shows variability, with some periods indicating a faster turnover of payables (higher ratios) and others showing a slower turnover. A higher payables turnover ratio is often a positive sign as it suggests that the company is efficiently managing its supplier payments and may have good relationships with its vendors.

It is important to note that the payables turnover ratio should be analyzed in conjunction with other financial metrics to get a comprehensive understanding of Neogen Corporation's financial performance and liquidity management.